Monday, February 4, 2019

Divorce Settlements after the TCJA

The Tax Cut and Jobs Act (“TCJA”) of 2017 has had a
significant impact on divorce and divorce settlements.The TCJA eliminated the deduction for alimony
payments and made this income non-taxable.This change is permanent and does not revert back in 2026 like many
other provisions in the TCJA.

If you have a prenuptial or postnuptial agreement, it is
advisable to have it reviewed by a qualified professional to determine if an
adjustment should be made.Trusts can
also be utilized to avoid the impact of the loss of the alimony deduction.These changes generally apply to divorces
executed after December 31, 2018.If you
are interested in revisiting your prior documents or may be in the process of a
divorce, contact the experienced attorneys of Morris Law Group for a
consultation on how the TCJA may impact you.